An Empirical Study on the Relationship Between the Scale of International Students from ASEAN and China’s Outward Foreign Direct Investment

With the further development of economic globalization since the establishment of ties between China and the Association of Southeast Asian Nations(ASEAN) 30 years ago and the continuous increase in the scale of international students in China,the training of international talents has become an important approach to avoiding the risks of transnational investments.We established panel data by selecting variables from the period 2006 to 2017,including the scale of international students coming from ASEAN to China,the gross amount of China’s outward foreign direct investment(OFDI),and the GDP per capita of ASEAN countries to further explore the correlations among these variables.We applied a panel-vector autoregressive(PVAR) model to conducting a Granger causality test,a Gaussian mixture model(GMM) regression analysis,a Monte Carlo-based impulse response analysis,and variance decomposition of the data.The results show that the growth of OFDI exerted an obvious positive impact on the inflow of international students from the countries along the Belt and Road(B&R) within a short period,the growth of the scale of international students coming from these countries to study in China had a strong positive effect on OFDI,the training of international talents was conducive to promoting the scale of transnational investments,but the overall quality was not very high,and its economic contribution rate was low.It is also found that OFDI and the scale of international students from the countries along the B&R promoted the GDP growth to a certain extent and the positive accumulation effect fluctuated due to external factors.Therefore,it is suggested to expanding the scale of OFDI and improving China’s core competitiveness in international student education.Intensive management of investment factors should also be conducted along with sound development of training mechanisms for international talents.

Empirical Study of China＇s Outward Foreign Direct Investment for 2001-2008

China＇s outward FDI has been increasing recently, as the country＇s policies over industrialization and national security change. Using financial data of 244 Chinese enterprises, this study empirically investigates the patterns and determinants of China＇s outward FDI from 2001 to 2008 for its seven major destinations. Tobit and multiple regression analyses indicate that early Chinese FDI in 2001 and 2002 is concentrated in the labor-intensive industries in Asia, like those of early Japanese FDI in the early 1970s as well as those of Korean FDI in 1990s. The results also indicate that non-production oriented manufacturers invested in North America, in order to seek for market cultivation, technological advance, R＆D skills, and name brands. We also found that the central state-owned enterprises are the key FDI players in the continents with locational disadvantages

FOREIGN DIRECT INVESTMENT AND ITS IMPACT ON CHINA'S ECONOMY: A RESEARCH APPRAISAL

Foreign direct investment (FDI) and the development of the hosted nations is a major issue facing researchers in many disciplines, especially in economic geography. This paper reviews the current available literature pertaining to the impact of FDI on the economic development in China, and emphasizes four points. First, although China is the second largest of FDI recipient and one of the fastest growing nations in the world, it has not drawn enough attention of researchers on the topic. And very few publications are found specifically focusing on the economic impact of FDI. Second, many areas of the impact of FDI have remained untouched. Particularly, there are needs for further studies to address the impact of FDI on efficient use of resources and overall competitiveness of the country. Third, in the theoretical aspect, research should explore the nature of bargaining power of all participants. Finally, it is suggested to select a number of case study areas and foreign funded enterprises for in depth studies.

Spatial pattern of foreign direct investment of China＇s textile enterprises

China textile industry has achieved encouraging achievements, becoming the primary industry of the integration of investment, production, consumption, employment increase and foreign exchange earnings. On the basis of reviewing studies on foreign direct investment of domestic textile enterprises, this paper come up with the structure analysis framework of spatial strategies of foreign investment of China's textile enterprises with the methods of statistical information, field research and interviews of senior managers. Besides, this paper analyze the spatial distribution and industry choices of foreign direct investment of China's textile enterprises.

Spatial Spillovers from Foreign Direct Investment： Evidence from the Yangtze River Delta in China

This paper examines the spatial externality from foreign direct investment on domestic firms. Using Chinese firm-level data for 2004, and after accounting for an endogeneity problem, we find that foreign firms generate a significantly positive spillover effect on the regional productivity of domestic firms in similar counties and industries. Estimating a spatial-autoregressive model, we further show that such local spillovers could transmit to domestic firms in other counties and industries through interactions among domestic firms. However, these spatial multiplier effects decline with distance, thereby reducing the foreign direct investment spillover effects for domestic firms in distant locations.

China’s Outward Foreign Direct Investment and Economic Growth in Developing Countries

The implementation of China’s open development strategy has unveiled a wave of outward foreign direct investment(OFDI)by Chinese companies,with global implications.Based on panel data from 146 developing countries from 2003 to 2017,we investigate the growth effects of China’s OFDI.We find that China’s OFDI has promoted significant economic growth in developing countries.Not only could China’s OFDI increase GDP per capita of a country in a short time but raise the country’s long-run equilibrium value as well.In addition,the growth effects of China’s OFDI were more significant for countries with weak governance,rich resource,and modest human capital,and were above the average level for Belt and Road Initiative(BRI)countries,African countries,and in the post-crisis era.Our research helps unravel the global significance of Chinese companies investing overseas and contributes to research on the growth effects of direct investment between developing countries.

Foreign Direct Investment with Chinese Characteristics:A Middle Path Between Ownership-Location-Internalization Model and Linkage-Leverage-Learning Model

The majority of multinational enterprises （MNEs） traditionally originate from developed countries. In the last ten years, however, there has been dramatic growth in foreign direct investment （FDI） from China. It is a comparatively new phenomenon that challenges the classic FDI theories. In this paper, we review the pros and cons of two important theories, known as the Owner- ship-Location-Internalization （0LI） model and Linkage-Leverage-Learning （LLL） model, and use the statistical data and company case studies from China to test the plausibility of these two models. We believe that neither of them suits totally： the OLI model is quite use- fill for understanding FDI from China to developing economies, while the LLL model is more powerful for explaining the FDI to de- veloped economies. We argue that the companies from China attain a very advantageous position as intermediates in the global economy They may catch up with the first movers if they integrate OLI-led and LLL-led FDI within one firm. This combination can bring to- gether the most advanced knowledge acquired in developed economies with the knowledge about adaptation needs and the needs for cost reduction in production as expressed in developing economies. It may also accelerate the knowledge transfer globally. We thus fill a gap in research into the geographical pattern of Chinese FDI and offer a deeper understanding of the internationalization of Chinese MNEs and revolving knowledge transfer.

Impact of China＇s Outward Foreign Direct Investment on Its Regional Economic Growth

This paper investigates the impact of China＇s outward foreign direct investment （OFDI） on its economic growth. By using a provincial-level panel dataset and applying fixed- effects and instrumental variable regression techniques, the study finds that both OFDI from provincial firms and OFDI from state-owned enterprises have a positive impact on China＇s provincial economic growth. The positive impact of OFDI on provincial economic growth may be the result of reverse knowledge spillovers from OFDI to the home provincial economy through demonstration and imitation, labor movement, and backward and forward industrial linkages, thus increasing the productivity and the efficiency of home firms and promoting the growth of the home economy.

Why Does China Receive So Much Foreign Direct Investment?

The emergence of China as the most attractive site for foreign direct investment (FDI) has been surprisingly impressive. In the two decades since economic reform was initiated in 1978, China has become the largest recipient of FDI among the developing world and globally, the second only next to the US since 1993. FDI flows were

Foreign Direct Investment in China:Recent Trends and Patterns

Foreign direct investment(FDI)in China has under-gone a rapid growth since 1992.In both 1992 and 1993,actual investment more than doubled. In the peak yearof 1993,contractual investment increased nineflod com-pared to 1991. Beginning in 1993, China emerged asthe largest recipient of FDI among developingcountries. Though this rising trend slowed down after1995, the momentum resumed in 2000 in 2000. China’s join-

Industry Mix and Curvilinear Spillovers from FDI in China

This paper uses industry and province specific Chinese industrial data to demonstrate a potential causal link between two strands of the FDI literature. The first strand suggests that the impact of spillovers from inward FDI is less robust in middle-income economies than in either high-income or low-income economies. The second strand suggests diminishing returns of inward FDI on horizontal labor productivity in low-technology industries but not in high-technology industries. This paper suggests a link between these two phenomena. Specifically, if both FDI intensity and industry mix vary with the level of economic development, then an industry-dependent relationship between inward FDI and horizontal spillovers could cause middle-income economies to derive fewer benefits from inward FDI than either high- or low-income economies. This paper also verifies the curvilinear relationship between FDI in low-technology industries and horizontal labor productivity without relying on problematic FDI from Hong Kong, Taiwan and Macao.

Political Impact of Chinese Foreign Direct Investment （FDI） in the European Union （EU）

This paper explores the political challenges posed by the recent influx of Chinese outward foreign direct investment （OFDI） into the European Union （EU）. Chinese OFDI has increased substantially in recent years. Chinese direct investment is still minute in the EU, but it is growing fast, and the strong upward trajectory is likely to continue in the years to come. This surge represents challenges and opportunities for EU countries. In the current context of economic and debt crisis in Europe, whether China is seen as a saviour or a predator, the question of a Faustian bargain made by European countries by courting and hosting Chinese investment needs to be asked. The benefits of foreign direct investment （FDI） for the host economy are well known, but Chinese OFDI may come with implicit strings attached and could potentially act as a Trojan Horse, affecting European norms and policies. The influx of Chinese OFDI can create an unhealthy transatlantic competition with security ramifications, which should therefore be addressed. It is interesting to find the right balance between ensuring the benefits from Chinese FDI （from job creation to productivity gains） and protecting from its harmful effects.

Impact of Foreign Direct Investment and Export on Urbanization： Evidence from China

This paper investigates the impact of foreign direct investment （FDI） and exports on urbanization in China. Using prefecture city-level panel data covering China ＂s 262 prefecture cities for the period 2004-2013 and employing a dynamic panel system generalized method of moments model with instrumental variable regression techniques, our study finds that FDI and exports have, on average, played a significantly positive role in China＇s urbanization. However, the impacts of FDl and exports on urbanization vary across regions. FDI has a positive and significant impact on urbanization in the coastal region but has no impact on urbanization in the inland region. Exports have a positive and significant impact on urbanization in both the coastal and inland regions, but the effect is much larger in the coastal region than in the inland region. The results imply that further attracting FDI inflows and promoting exports will contribute to China＇s urbanization, especially for the inland region.

Impact of Foreign Bank Presence on Foreign Direct Investment in China

We analyze the impact of foreign bank presence on foreign direct investment （FDI） in China. The connection between the two couM be particularly relevant for an emerging economy like China because the supply of financial services provided by banks may act as a constraining factor. Foreign bankpresence may then enable and foster FDI and not simply result from it. Our estimates demonstrate that FDI across regions in China is increasing in the existing network of regional branches of foreign banks, which itself is driven （and, therefore, instrumented） by the timing of the regional phasing out of the local limits for foreign banks on local currency business. The effect of foreign bank presence on FDI is particularly strong for some specific sectors （farming, manufacturing, construction, transportation, wholesale/ retail trade and real estate） if those sectors are strongly represented in the source economies.

Does Foreign Direct Investment Affect the Growth of Local Firms? The Case of China's Electrical and Electronics Industry

Does foreign direct investment （FDI） into developing countries affect the growth of local firms in host countries？ Using a dataset of 38 sectors in China ＇s electrical and electronics industry, in this paper, we analyze whether FDI has a positive effect on loeal firms, with technology spillovers, added value and increasing total faetor productivity, or a negative, market stealing, effect. Estimating the relationship between growth of local firms and investment offoreign firms, our results show that FDI is likely to have a negative impact on the growth of local firms in sectors with large disparities in technology and less experience in business. Therefore, local firms lacking in technology need to find markets with no competition from foreign firms or determine strategies to compensate technology disparities.

Determinants of China’s outward foreign direct investment in Asia:a panel data analysis

This paper is an attempt to examine the trends and significant determinants of China’s outward foreign direct investment(OFDI)in Asia.In order to find out the important determinants of China’s OFDI in Asia,this study applies the panel data regression technique.The time period from 2006 to 2015 is taken into consideration.Econometric analysis has been done based on three data sets:the first includes 27 Asian countries/regions which attract Chinese OFDI.While Chinese Hong Kong is excluded from the sample,the second data set consists of 26 countries the same as those in data set one.The third data set comprises China’s top 12 destination countries of OFDI in Asia.The findings show that China’s OFDI has risen rapidly and secured the second rank globally,only behind the United States and surpassing Japan.For the first time,the flow of Chinese OFDI exceeded the level of inward foreign direct investment(IFDI),and Asia attracted a 74.4%share out of China’s total OFDI in 2015.The results reveal that inflation rate,export,import,corruption,infrastructure and geographic distance are the significant determinants of China’s investment in Asia.This paper provides new evidence on the determinants of China’s OFDI in Asia.By using currently available data of 27 Asian host countries,this paper offers a new insight into significant determinants of China’s OFDI in the region.

Has China Crowded out Foreign Direct Investment from Its Developing East Asian Neighbors?

This paper applies a gravity model to investigate the determinants of foreign direct investment （FDI） in East Asia. Economic fundamentals, such as market size, per capita income and country risk indicators, economic and cultural ties, exchange rate volatilities and information asymmetry are found to be important determinants for FDL Globally, the inward FDI among high-income OECD economies declined significantly on average over the period of 1990-2003, whereas the inward FDI of the high-income OECD economies in emerging market economies gained substantially. In the East Asian region, the ASEAN-4 （Indonesia, Malaysia, the Philippines and Thailand） received above-average inward FDI from the high-income OECD economies after controlling for their economic fundamentals. By contrast, China＇s FDl from the high-income OECD economies is below average relative to its economic fundamentals. Therefore, it is difficult to establish that China has crowded out FDI from its developing ASEAN neighbors.